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FLOWS
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Monday, 5 May, 2014
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BUY
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DIGI,
MISC, GAMUDA
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SELL
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YTL, CIMB, MAYBANK
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STOCK ALERT
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STOCK NAME
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DATE
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PRICE
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BUY/SELL
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TARGET PRICE
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THHEAVY (7206)
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5/5/2014
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RM0.90
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Trading BUY
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RM1.20
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THHeavy The Group is on its way to becoming a
full-fledged EPCIC player with as the group has a few key credentials under
its belt. 1) THH is one of the 8 Petronas licensed o&g fabricator in the
Country, 2)Currently has a 57-acre fabrication yard in Pulau Indah which the
group recently refurbished expanding its capacity to 20,000mt which could
take up jobs up to 1.2bn 3) Partnership with McDermott International has
enabled the group to jointly bid for larger EPCIC project tenders as well as
take part in installation & pipelaying jobs that’s been secured by the
prior. The group’s current outstanding orderbook stood at RM400mil as off
April and will last them until mid 2015. Moving forward, the group is
expecting to secure another 300mil worth of contract for the rest of the year
while waiting for the key rerating catalyst for the group which would be the
clincing of the RM1bn JX Nippon Layang Field FPSO (7 year contract). The
group returned into the black from a lacklustre 2013 as they currently trade
around 18x PE multiple for FY14 and a leap to 10.9x for FY15; this is relatively
low compared its mid-cap peers which trades at an average of 15x. Share price
consolidated well around the RM0.875 to RM0.93 level and is currently trading
at the lower end of the Bollinger band. RSI only 39%. Trading BUY with a TP
of RM1.20 based on 15x FY15a using 0.08 EPS.
(RL)
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HOHUP (5169)
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5/5/2014
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RM1.60
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BUY
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RM2.30
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2014 has been a good year for the group after
it completed its financial regularization exercise which puts the company in
a net cash position of RM18mil in the beginning of the year, this follows
with the recent upliftment of its PN17 status which will be effective on
the 5th of May. The upliftment of the PN17 status will draw
interests from institutions and would enable them to tender for more projects
moving forward. One of the catalyst for the group is the JV with Malton
whereby Hohup will receive 18% of the total project GDV of (RM4.1bil) for the
building of Pavilion 2 Mall (Spanning over 20 of the 50 acres) on its 60 acre
free hold land in Bukit Jalil in which the group has taken the decision to
not participate in the construction to keep the cash flow more transparent.
The 60 acre land that the 2.1mil sq ft mall will be built on has a
conservative market value of RM550mil or RM1.40 per share. Group’s growth remain
compelling as they currently have 2bil worth of tenderbook which includes a
RM300mil water treatment place in Pengerang for the RAPID project and
possible parcel to develop EPF’s RRI land (943 acres) in Sg Buloh. Currently
trading at Single Mid PE of 5x for FY14 and will see a boost in 2015 numbers
when the JV development with Malton starts contributing. Buy with a TP of
RM2.30 based on peer average of 9x for FY14.
(RL)
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Calls for APRIL Week 3/Week 4 2014
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STOCK
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Initiation
Dates
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Initiation
price
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BUY/SELL
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TARGET PRICE
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LAST PRICE
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% Change
since Initiated
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MAYBANK (1155)
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25/4/2014
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RM9.96
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Switch > RHBCAP
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-
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RM9.88
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-0.9%
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PERISAI (0047)
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25/4/2014
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RM1.63
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BUY
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RM1.88
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RM1.58
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-3.1%
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IOIGP (5249)
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28/4/2014
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RM2.69
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BUY
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RM3.40
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RM2.69
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0.0%
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IGB (1597)
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28/4/2014
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RM2.75
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ACCUMULATE
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RM3.20
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RM2.73
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-0.8%
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GAMUDA (5398)
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29/4/2014
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RM4.55
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BUY
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RM5.45
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RM4.59
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+0.8%
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SUNWAY (5211)
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29/4/2014
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RM3.15
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BUY
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RM3.50
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RM3.04
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-3.5%
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MISC (3816)
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30/4/2014
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RM6.39
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BUY
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RM7.10
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RM6.43
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+0.6%
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SEALINK (5145)
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30/4/2014
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RM0.465
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BUY
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RM0.57
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RM0.465
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-0.0%
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HARTA (5168)
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2/5/2014
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RM6.34
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ACCUMULATE
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RM7.40
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RM6.28
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-1.0%
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UMW (4588)
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2/5/2014
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RM10.76
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ACCUMULATE
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RM12.00
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RM10.78
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+0.1%
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HOLD
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CONT SELL
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SELL/ TAKE PROFIT
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CONT BUY
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STRONG BUY
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